The cost crossover point between offset and digital

Digital printing technologies and printing costs have changed dramatically over the years. Over a decade ago, large production cut sheet color digital printers (like the HP Indigo 7K Digital Press, Xerox iGen, and Kodak NexPress) were a dominant force in the commercial print market as B2 entered the space. These A3/B3 electrophotography printers offered average total costs of ownership (TCOs) of around $0.045 per page based on average monthly print volumes (AMPVs). Fast forward to today, and the latest B2 and B3 inkjet printers, which are running higher AMPVs, are operating at TCOs 60% less than that of their 2010 counterparts, thanks to advancements in technology and increased efficiency.

We have examined the trend of digital printing production becoming more cost-effective compared to where it was over a decade ago. Using the Keypoint Intelligence online crossover point estimator (comparison data seen in Figure 2) highlights just how much cheaper it is to run a digital printing job today compared to 2010. This shift has made digital printing more attractive for higher volumes, which were previously dominated by offset printing.

Advancements in digital printing technology have introduced larger, more productive, and cost-effective production printers/presses (especially around inkjet), while color standards and other measures for top quality have risen. This combination can now challenge the cost per job advantages associated with more traditional offset presses. Historically, the cost crossover point was much lower. For instance, in 2010, the crossover for large production color digital printers was around 2,000 A4 prints (see Figure 3’s orange and grey lines); thereafter, the cost for large digital printing escalates sharply after 2,500 A4s compared with offset printing. This narrative has now changed in recent years; in the advent of falling digital print costs and rising offset printing costs, we see the 10,000 A4s crossover point of today (blue and light blue lines).

For any crossover point comparison exercise, it’s worth remembering that the crossover point will vary greatly depending on the specific printing equipment and operational costs of PSPs, whether offset or digital. When establishing the “sweet spot” for particular print processes, PSPs must consider a range of print operation specific variables. What you are running—the type and variety of applications that a press needs to handle—and how you are running it can have a big impact on the economic crossover point and for justifying the type of press to invest in as well the day to day running of that equipment. For digital printing, the type of printer and its AMPVs are critical. High-end digital presses with large AMPVs can lower the crossover point, while lower production digital printers can increase it.

New, highly productive offset presses with low make-ready times can bring the crossover point down to around 4,000 A4 prints. In contrast, older, less efficient offset presses may push the crossover point up to 12,000 A4 prints or more.

Figure 4. Notes: Large digital printing production (Heavy) B2 current costs based on $850K capital investment (8% financial interest), $4,000 monthly service, $0.01 A4 running costs, and 2.5M AMPVs. Offset B2 (average) current costs based on 10 shifts per week (8 hours per shift), 70% utilization rate, 12 minute make ready and 300 sheets paper waste. Financial interest at 8% (two operators per press). Offset B2 (old and low production) current costs based on 7.5 shifts per week (8 hours per shift), 65% utilization rate, 30 minute make ready and 500 sheets paper waste. Financial interest at 8% (two operators per press). Offset B1 perfector (new and large production) current costs based on 21 shifts per week (8 hours per shift), 80% utilization rate, 5 minute make ready and 200 sheets paper waste. *Financial interest at 8% (two operators per press).

Figure 4: Current Offset Crossover Points Range with B2 Digital

Figure 4 illustrates a range of offset versus digital printing crossover point scenarios going from 4,000 A4s to 12,000 plus, depending on the PSP’s equipment (old/new) and production operation hours. For example, a new B1 perfecting offset press running 24/7 per week with minimal make-ready time and paper waste has a crossover point of around 4,000 A4 prints. In contrast, an older, slower non-perfecting offset press running more limited 7.5 shifts per week (1.5 shift Monday through Friday), with higher make-ready times might have a crossover point of 12,000 A4 prints or more.

There are scenarios that favor offset. Compare that new B1 perfector high production offset press with a low volume digital printer toner device with AMPVs of 200,000 A4s, and our estimator places the crossover point as low as 1,400 A4s. These variations underscore the importance of considering specific equipment and operational factors when determining the crossover point.

Different applications (direct mail campaigns, brochures, and promotional materials) often see varying crossover points depending on the complexity and volume of the job. Our survey research identified the most common crossover point for PSPs running jobs without variable data is at 10K A3 impressions (20K A4s). This highlights that when PSPs have robust large production digital printers and old low operation offset presses, digital printing starts to become more cost-effective.

Figure 4 illustrates a range of offset versus digital printing crossover point scenarios going from 4,000 A4s to 12,000 plus, depending on the PSP’s equipment (old/new) and production operation hours. For example, a new B1 perfecting offset press running 24/7 per week with minimal make-ready time and paper waste has a crossover point of around 4,000 A4 prints. In contrast, an older, slower non-perfecting offset press running more limited 7.5 shifts per week (1.5 shift Monday through Friday), with higher make-ready times might have a crossover point of 12,000 A4 prints or more.

There are scenarios that favor offset. Compare that new B1 perfector high production offset press with a low volume digital printer toner device with AMPVs of 200,000 A4s, and our estimator places the crossover point as low as 1,400 A4s. These variations underscore the importance of considering specific equipment and operational factors when determining the crossover point.

Different applications (direct mail campaigns, brochures, and promotional materials) often see varying crossover points depending on the complexity and volume of the job. Our survey research identified the most common crossover point for PSPs running jobs without variable data is at 10K A3 impressions (20K A4s). This highlights that when PSPs have robust large production digital printers and old low operation offset presses, digital printing starts to become more cost-effective.

Figure 5. Notes: N = 16 respondents who selected. B3 sheet-fed inkjets costing between $501,000 and $1 million. B2 sheet-fed digital printers costing between $501,000 and $1.3 million. Sheet-fed B2, B1, B3, or web-fed offset presses.

Figure 5: Crossover Point for Non-Customization Jobs

The bottom line

The printing industry is continuously evolving, with advancements in both offset and digital technologies. Innovations such as improved digital press speeds, enhanced offset pre-press processes, and hybrid solutions are shifting the cost crossover point. PSPs should stay informed about these trends to adapt their strategies accordingly. Understanding the cost crossover point between offset and digital printing is crucial for PSPs aiming to optimize their production processes and costs. As digital printing becomes more economical and offset costs rise, PSPs must reevaluate their strategies. Investing in both offset and digital capabilities, staying informed about industry trends, and leveraging data-driven tools for cost analysis will enable PSPs to make informed decisions that enhance operational efficiency and competitiveness.